Money must be spent on the crumbling care system to make long-term savings, an
alliance of 50 charities warns the Government today.

In a letter to The Daily Telegraph, the alliance tells of an “urgent and deepening crisis” affecting some of the most vulnerable people.

It appeals to the Government to overhaul the system and commit extra money to it. The plea comes days after council leaders warned that the cost of paying for social care was threatening to swallow funds for other important services.

The Care and Support Alliance, which includes charities and support groups working with the elderly and disabled, is increasing pressure on the Government to commit to a new system of funding care.

The Government is finalising a White Paper on how care services could work more closely with the NHS.

The question of how care would be funded is the subject of cross-party talks, which hinge on the advice of a commission chaired by Andrew Dilnot, the Oxford economist. He has proposed capping the amount that anyone would pay for care in their lifetime and raising the eligibility threshold for state support dramatically.

At present anyone with more than £23,250 in assets, including their own home, receives no financial help with care costs. The Dilnot Commission recommended raising that figure to £100,000 and setting a cap of about £35,000 on the amount that anyone would ever have to pay out.

It is estimated that the new system would cost the taxpayer about £1.7billion a year.

The alliance said targeted spending would save money by reducing the burden on the NHS. It said that it dealt with the consequences of cuts in spending by councils, in response to the Government’s austerity drive, every day.

The alliance also echoed a call from council leaders for the Government to commit to reforming how care is funded.